Page 36 - FAIR TRADE COMMISSION 2023 ANNUAL REPORT

Fair Trade Commission Annual Report 2023
5.Optimizing Multi-level Marketing and Enhancing Protection
(1) Adopting effective measures in multi-level marketing administration
The multi-level marketing industry in the country has been prosperous. Multi- level marketing is an important sales channel and about 370 businesses have completed registration. The aggregate annual sales now exceed 100 billion dollars. To maintain trading order in multi-level marketing and protect the interests of participants, the Commission spared no efforts in investigating illegal multi-level marketing practices in 2023 and imposed fines or issued warnings when finding illegal activities. The main violations included concealing statutorily required information from participants before they joined the schemes or the organization, giving false or misleading representations, not making it clear to recruits that they would be engaging in multi-level marketing, and not filing changes according to law. Through reviewing registered information, conducting business inspections, giving presentations on multi-level regulations, and surveying the management conditions of multi-level marketing businesses, the Commission guided the businesses to abide by the regulations to promote the positive development of the industry.
To ensure that the multi-level marketing policies and guiding measures can better suit the needs of multi-level marketing businesses, the Commission surveys the management conditions of multi-level marketing businesses on an annual basis. On Jul. 18, 2023, the 2022 Multi-level Marketing Business Management Condition Survey Report was released for public access. The survey showed that there were about 3.486 million participants in 2022, slightly
Spread of Multi-level Marketing Sales
Spread of Multi- level Marketing Sales

No. of Businesses (People)
Percentage (%)
Sales (million dollars)
Ratio to Total Sales (%)
Total
373 (3,486,407)
100.00
105,467.05
100.00
Less than 1 million
69 (16,555)
18.50
15.13
0.01
1 million to less than 10 million
95 (26,431)
25.47
466.55
0.44
10 million to less than 100 million
117 (260,731)
31.37
4,438.02
4.21
100 million to less than 500 million
57 (361,403)
15.28
12,816.19
12.15
500 million to less than 1 billion
15 (513,977)
4.02
10,600.83
10.05
More than 1 billion
20 (2,307,310)
5.36
77,130.34
73.13
34
Note: The percentages were rounded to 2 decimal places; hence, the totals could be incorrect up to 2 decimal
places.